NTPC to issue tenders for farmers to buy farm stubble

New Delhi , Nov. 16 : Power Minister R.K Singh today said that the state-run National Thermal Power Corporation (NTPC) will soon issue tenders to buy farm stubble.

"This step would give the farmers a monetary return of Rs. 5500 per tonne of crop residue and hence create a market for it," Singh said.

In a bid to combat air pollution, the Power Ministry on Thursday directed the state run National Thermal Power Corporation to mix straw and crop residue pellets with coal, up to 10 percent, for power generation in all its thermal power plants.

Speaking at a press conference Singh said, "Spoke to generators of NTPC Thermal power plant, they say it is possible for their fuel to consist of 10 percent straw or paddy straw. Now we will issue tenders for it and the average price will be Rs 5,500 per tone."

He added that the step would reduce crop residue burning in agriculture dominated states like Punjab and Haryana and hence would reduce the critical problem of air pollution.

Singh highlighted that the infrastructure for sourcing the crop residue from farmers is being set up.

Power Minister further said this move will help farmers earn around Rs. 11, 000 per acre from the sale of stubble/straw pellets. He also assured that the use of farm residue pellets would not result in a tariff escalation for the power generator.

The ministry, however, is in talks with all state governments to make this step mandatory for all the thermal power plants in their jurisdiction, Singh added.